RBI excludes FCNR(B), NRE deposit loans from PSL calculation

The Reserve Bank of India (RBI) on August 7 amended priority sector lending (PSL) rules to exclude advances against fresh FCNR(B) and NRE deposits from Adjusted Net Bank Credit (ANBC) for calculating PSL targets. The exemption applies to deposits mobilised or renewed between June 8 and September 30, 2026, for FCNR(B) deposits of three to five years, and NRE term deposits of three years or more mobilised between June 19 and September 30, 2026. The move follows RBI's June measures to attract foreign currency inflows, which have already brought in $36.7 billion by July 31.